AUD/USD: Consolidation phase expected – UOB Group

💡 DMK Insight

AUD/USD is at a critical juncture, and here’s why traders should pay attention: With the pair closing at 0.6916, it’s hovering near key support and resistance levels. A breakout above 0.6945 could signal a bullish trend towards 0.6985, which aligns with broader market expectations for a stronger Australian dollar. This potential movement is particularly relevant given recent economic data suggesting resilience in the Australian economy, which could attract more buyers. However, if it fails to break above 0.6945, we might see a pullback towards the 0.6880 support level, making it crucial for traders to monitor these thresholds closely. On the flip side, if the AUD/USD consolidates without breaking out, it could indicate a period of indecision, potentially leading to increased volatility as traders reassess their positions. Keep an eye on economic indicators from both Australia and the U.S. that could influence this pair, especially any shifts in interest rate expectations. The immediate focus should be on the 0.6945 level, as it will dictate the next move for this currency pair.